Critical Metals shares surge 17.99% on $1.55 billion rare-earth push

Critical Metals Corp. shares rose 17.99% to $7.87 Tuesday afternoon, according to Benzinga Pro data, after the Trump administration finalized a $1.55 billion rare-earth funding package. The package includes a $750 million Department of War investment, a $500 million debt facility and a $300 million forward purchase contract for USA Rare Earth Inc. The agreement signals Washington's willingness to invest in and purchase output from projects intended to reduce defense supply-chain dependence on China. Traders may view Critical Metals' Tanbreez project in Greenland, which has a substantial heavy rare-earth profile used in military-grade permanent magnets, as a potential beneficiary of future U.S. defense-aligned capital and offtake (commitments to purchase future production) partnerships. Sentiment also improved after Critical Metals amended its proposed acquisition of European Lithium Limited, replacing the exchange ratio with a floating structure capped and collared between $8.00 and $16.00 to protect shareholders from equity dilution. CEO Tony Sage said Tanbreez's development timeline remains on track, with commercial production expected within three years.

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